GST reforms infused ₹2 trillion in Indian economy: Nirmala Sitharaman

The finance minister also said the GST revenues grew to ₹22.08 trillion in 2025 from when it was introduced

Union Finance Minister Nirmala Sitharaman on Wednesday said that the Goods and Services Tax (GST) reforms have infused at least ₹2 trillion in the economy, thereby leaving more cash with the citizens.

 

Speaking at the Outreach and Interaction Program on Next Gen GST Reforms in Visakhapatnam, the FM said, "reducing GST rates will save the countrymen ₹2 trillion," adding that the reforms are a "big step for the Indian economy."

'GST reforms very beneficial for middle class'

Sitharaman also said that 99 per cent of the items in the 12 per cent GST slab are now in the 5 per cent tax bracket. This will be very beneficial for the middle class and help reduce poverty, she said. The rejig has resulted in 90 per cent of items under the 28 per cent tax slab slipping into the 18 per cent bracket.

 

 

The FM said that the benefits of the GST reforms will be 10 times greater than the incentives given to various industries in the country. 

 

The minister also said the GST revenues grew to ₹22.08 trillion in 2025 from the time it was introduced. She also added that the taxpayer's number grew to 15.1 million from 6.5 million.

Sitharaman to attend CII business summit

Sitharaman will also attend a Confederation of Indian Industry (CII) business summit on Global Capability Centres (GCCs) at Visakhapatnam later in the day. The summit will focus on emerging trends, criteria for decision makers when selecting a city or state, and state policy formulation in attracting GCCs.

 

She will also attend Prime Minister Narendra Modi’s virtual address on ‘Swasth Nari, Sashakt Parivar Abhiyaan’ before attending the GCC Business Summit.